market summary

1. Market Analysis Summary
Tourism industry is an upward growth industry especially in third class country like
Malaysia. There are several reasons for this increasingly trend. First, a relative healthy
domestic economy over the last several years and the devaluation of currency in other
regions has made travel less expensive for Malaysian residents. Pleasure travel has
increased by 3.2% in 2018 and is predicted to grow 2.0% in 2019. Second, the healthy
economy has increased business, which in turn boosted domestic business travel 4.8%
in 2018 with an estimated increase of 3.6% in 2019 accumulating 82.1 billion in
receipts.
What we are doing here is diving into a very niche market, where we had to foresee
the market trend of people coming to Sipadan Island enabling us to tap that potential
of high customer traffic. We added value to our client in experiencing island tour but
with an automatically flying drones. The are no possible market analysis to back the
data of this idea but we try to find the exact alternatives of the market end user to
replicate the same results. Data of Malaysian who do extreme sports, diving and
snorkelling are taken into account in analysing our business idea for reality check,
while statistics show that 1,000 Malaysian companies (that offer adventure
packages) and similar style generated $4 billion in 2019 which are 5% of total tourism
industries transaction in 2019.
4.1 Market Segmentation
Air Venture’s Ltd target customers are high income (min. $70,000 for single person),
health-conscious individuals and outgoing family (min $120,000 for family) whom
are interested in popular hard-adventure sports such as snorkelling, extreme sports,
bungee jumping and related activities. The potential major purchasers are the one
located at urban areas within these Malaysian cities as the gross income is higher. The
key market segments for flying drones tour are described more fully below:

2. Young Couples: Aged 21 to 39, young couples without children look for romantic
getaways as well as high-energy activities (ski boats, hiking, diving, etc.).
Older Couples: Aged 40 and up, although some within this age bracket will still be
very active and self-identify with young couples. Mostly these are succesfull or
businessman or important figures that can afford our services.
Families: Couples or individuals with children. They require a mix of relaxation for
parents and high-energy activities for children.
These were taken from 2012 to 2017 :

3. MARKET ANALYSIS
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Potential
Customers
Growth CAGR
Young
Couples
5% 25,000 26,250 27,563 28,941 30,388 5.00%
Older
Couples
7% 30,000 32,100 34,347 36,751 39,324 7.00%
Families 5% 45,000 47,250 49,613 52,094 54,699 5.00%
Total 5.61% 100,000 105,600 111,523 117,786 124,411 5.61%

4. 4.2 Target Market Segment Strategy
AirVenture will promote/positionitself as a differentiated provider of luxury hard-
adventure tour services, and will price accordingly within the chosen service niche.
AirVenture is targeting this special population for several reasons:
1. This segment, up until now, has been underserved.
2. This market segment traditionally spends a fair amount of money on adventure
trips.
3. This target segment seems to be willing to pay a premium for a top-shelf
adventure excursion.
Methods of communication will include direct mail, magazine advertising, personal
selling and WWW presence. Continuous magazine advertising will be costly. Initially
the use of direct mail, and personal selling will be employed. These methods of
communication will be tailored to reach our target segment.
4.3 Service Business Analysis
As operations progress, AirVenture will continue to measure our progress relative to
competitors and to the growth of the market(s) in which we operate. Though the
primary target market has been defined, there may be new possibilities to serve
additional segments. As the product is defined, and the strategy differentiation is
defined based on competitive strengths, AirVenture will be better able to determine
whether adjustments in positioning are necessary. Access to important information
concerning the market, competitors, etc., is available. However it is not free. For the
purposes of this project, we feel it is unnecessary to incur additional expense before
we reach breakeven.

5. The marketing strategy will be to develop long-term relationships with customers. We
will keep a database from which to obtain important demographic and psychographic
information. As the business becomes profitable, plans will be implemented to
expand. There is virtually no end of spectrum of what AirVenture can achieve. The
goal is to establish AirVenture as one of the pioneer in revolutionizing the way people
see transportation, and of top-of-the-line of tourist attractions.
4.3.1 Competition and Buying Patterns
Strengths and weaknesses of the competitors:
The sole competitors in this market are our joint venture called seaventures which
provide a first class diving session as well as resorts and accommodation which our
customer will be staying in. The advantages they have include established reputations,
extensive knowledge of the industry, and key personnel and management. They are
familiar with local service providers and have established strategic relationships,
which why we decide to joint venture before diving in this market.
Advantages for us:
 No barrier to entry as we are the first one to enter such market in our region
 No restrictions of price as we set the pace
 High traffic of customers in Sipadan Island which we can tap(High potential)
 High chances of successful marketing as people usually curious on new trend

6. Disadvantages to us:
 It will be difficult to price ourselves effectively when we first enter the market as
no right or actual price approach will be known, and we will be relying solely on
analysis and assumptions.
 The weather for a given year is hard to predict. Poor conditions will threaten the
success of trips. Unforeseen occurrences such as inadequate heavy rain could
affect the viability of our services.
 Rigid law of land and air of Malaysian government, although workable, really
challenge and worked out our business team.